When a nations government commits to participating in a regional trade bloc, there are many issues that can catch a small business off guard. Some of these issues range from increased competition, loss of employees, and the inability to obtain high quality materials that were traditionally available from non member nations from regional suppliers.
The role of the government in assisting companies with these is somewhat tricky. The intention of participating in the regional trade bloc is to increase trade, which is usually the successful outcome for the nation as a whole. One of the benefits of these trade blocs is the reduction of government involvement in trade. For government to provide assistance to its companies can be somewhat hypocritical of the bloc agreement if it hampers trade in any way with other bloc members. In the event that a company’s revenue is threatened by the importation of goods from a non- bloc member, tariffs or import taxes can be imposed to reduce the competition. This would need to be coordinated with member nations to ensure continuity. Another way the government can help is to reduce the imported goods by way of quotas. This would still allow a portion of the goods into the country while assuring that companies within the country or bloc can still compete. The best thing that a government can do for its small companies that struggle after a trade bloc is established is to ensure that all short term funding issues are addressed by setting up assistance services and most importantly, make sure that educational services within the country cater to a countries strengths by shoring up established programs and instituting new programs to address shortcomings as they arise.
While I do believe that a government needs to monitor how participation within a trade bloc has effected companies within its borders, the least amount of government involvement would be best, in my opinion. Trade blocs are continually being amended by opening up trade to other countries over time. Some of the diplomacy that a country takes on in the short term to try to help situations within its borders could have lasting effects with countries that may wish to participate within the bloc in the future
small companies typically have difficulty competing against large multinationals when their governments take part in regional trade blocs. What could governments do to help their small companies compete after the formation of such blocs?
Thanks for any suggestions.
Governments can reduce taxes for small businesses that compete for international business. They can also reduce the tariffs for goods imported by these small businesses.
what are china's term of trade
Small companies typically have difficulty competing against large multinationals when their governments take part in regional trade blocs. What could governments do to help their small companies compete after the formation of such blocs?
Read the case study entitled, "Shutdown at Eastland" on page 89 in your text.
How would you have handled this situation?
In this assignment, propose a plan to close the assembly plant in Eastland, Michigan. In this plan, be sure to explain the following:
Terms of the close - what notice would you give, what benefits would you provide, etc.
Describe all of the affected stakeholders and how their interests will be considered.
Who do you propose should take primary responsibility for those laid off as a result of the plant closing?
How will this news be communicated to the workers, press, and community?
Please submit your assignment.
I need a short proposal for a business project of any kind
Boutique shop which consists of the selling of clothes, shoes and accessories along with the pampering spa
2 answers
what is the source reference for your writing?
0 answers